(updated)
The government of the United Arab Emirates (UAE) has announced the mandatory implementation of electronic invoicing for business-to-business (B2B) transactions starting in the second quarter of 2026. This development is part of the project called “E-Billing System” under the supervision of the MoF, Ministry of Finance, which seeks to digitize and modernize the country's tax system.
It stands out:
• Adoption of Peppol to streamline transactions.
• Implementation of the Peppol 5-Corner Model.
• AE PINT Data Dictionary.
We explain all these points to you in detail.
If your company has operations, business activities, suppliers, or needs to issue invoices in the United Arab Emirates, it will be required to comply with the mandatory eInvoicing system. In other words, the regulation applies to any company, not only VAT-registered taxpayers or local businesses.
What is the “E-Billing System” in the field of electronic invoicing in the UAE?
The “E-Billing System” is an initiative of the UAE government aimed at regulating electronic transactions, accounting and digital storage both in the business sector (B2B) and in interactions with the government (B2G). The main objective of this system is to standardize and automate the exchange of electronic invoices, facilitating real-time communication between the parties involved. In addition, it is expected that in the future this system will be extended to business-to-consumer (B2C) transactions.
e-Invoicing deadlines in the United Arab Emirates
2025: Publication of electronic invoicing regulations in the country.
2026: Pilot program.
January 1, 2027: Mandatory B2B and B2G e-invoicing for large taxpayers with annual revenues exceeding AED 50 million.
July 1, 2027: Mandatory implementation of e-invoicing for small businesses (< AED 50 million).
Features of mandatory electronic invoicing in the UAE
• Model: Decentralized, five-corner Peppol model (as in Belgium and possibly in the United Kingdom). In this article, we explain to you what is the 5-corner model of electronic invoicing.
• Format: Adoption of the Peppol standard and use of AE PINT Data Dictionary to standardize data requirements on invoices.
• Archiving: 10 years.
• Electronic signature: it will be mandatory.
• Reporting: An integrated tax reporting system will be established that will facilitate efficient communication with the UAE Federal Tax Authority.
Updates and new developments in Version 1.1 of the UAE eInvoicing Guide
In July 2026, the UAE Government issued an update clarifying several aspects of the obligations related to e-invoicing:
- Invoice document storage is the responsibility of the company/taxpayer. At Brait, for example, we implement intelligent document management systems (ECM) integrated with the eInvoicing system, providing a seamless user experience without leaving SAP. In the case of our INVICTIA connector, document archiving for the legally required retention period is already included.
- When an advance payment is received, a corresponding e-invoice must be issued, and the final invoice must reflect the outstanding amount to be invoiced.
- Both invoices must be correctly linked within the PINT AE model to ensure full traceability of the transaction.
Preparing for electronic invoicing in the UAE with Brait
If your company has a business relationship or invoice in the UAE, you can count on Brait's expert advice for comprehensive compliance with the new regulations.
We have a connector for SAP that allows global compliance with different electronic billing regulations and we work with partners that are certified Peppol Access Points, like EDICOM. Check here how Invictia works.
In addition, you will have the peace of mind of having a team with extensive experience in this type of project for various internationally recognized companies and brands. Contact us now!
